NYSE$DOW

Dow Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Dow's financial performance for the second quarter of 2022 was reported, showing increased net sales but decreased operating earnings compared to the previous year.

Dow reported a 13% increase in net sales compared to the year-ago period, with gains in all operating segments and regions. However, operating EBIT was down due to higher raw material and energy costs, as well as lower equity earnings. The company returned $1.3 billion to shareholders through share repurchases and dividends.

  • GAAP earnings per share (EPS) was $2.26; Operating EPS was $2.31, compared to $2.72 in the year-ago period.
  • Net sales were $15.7 billion, up 13% versus the year-ago period with gains in all operating segments and regions.
  • GAAP Net Income was $1.7 billion; Operating EBIT was $2.4 billion, down $453 million versus the year-ago period.
  • Returns to shareholders totaled $1.3 billion in the quarter, comprised of $800 million in share repurchases and $505 million in dividends.

Headline financials

Total Revenue

$15.7B

Previous: $13.9B+12.8%
EPS (adj)

$2.31

Previous: $2.72-15.1%
Capital Expenditures

-$537M

Previous: -$357M-50.4%
Free Cash Flow

$1.12B

Previous: $1.54B-27.2%
Net Income

$1.66B

Previous: $1.9B-12.6%
Operating Income

$1.93B

Previous: $2.15B-10.1%
Gross Profit

$2.77B

Previous: $3.15B-12.1%
Cash & Equivalents

$2.37B

Previous: $3.49B-32.2%
Total Assets

$62.1B

Previous: $61.8B+0.6%

Revenue & EPS history

Dow · Revenue · Quarterly

$15.7B

Q2 2022+12.8%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Dow · $15.7B total across 4 segments · Q2 2022

  • Packaging & Spec. Plastics
    $8.23B+15.6%
  • Industrial & Infra
    $4.37B+3.7%
  • Performance Materials
    $3B+21.8%
  • Corporate
    $58M-31.0%

Forward guidance

Dow expects long-term fundamentals to drive growth across its end markets, leveraging its diverse portfolio and flexible operating model to capitalize on opportunities. The company's focus remains on delivering value and shareholder remuneration.

Tailwinds

  • Long-term fundamentals driving growth across end markets remain attractive
  • Leveraging diverse, global portfolio and flexible operating model
  • Capitalizing on attractive growth opportunities
  • Actions taken to enhance the resiliency of the business position us well to deliver value
  • Disciplined and balanced approach to capital allocation has delivered higher mid-cycle earnings

Headwinds

  • Near-term market conditions are dynamic
  • Impacts of pandemic-related lockdowns in China
  • Continued logistics constraints
  • Higher energy and raw material costs
  • Unspecified economic environments

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.0%

Avg return

Earnings day

-0.1%

Avg return

5 days after

-1.5%

Avg return

30 days after

42%

14 / 33 earnings

Positive

+13.0%

Q3 2025

Best reaction

-9.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-2.1%-7.2%
Q4 2025-1.9%+9.8%+10.6%
Q3 2025+13.0%+17.0%+2.3%
Q2 2025+2.0%+2.7%+9.2%
Q1 2025+2.6%+5.7%-2.3%
Q4 2024-6.1%-6.1%-7.2%
Q3 2024-3.5%-3.9%-11.7%
Q2 2024-0.9%+0.7%+0.4%
Q1 2024+0.5%-0.1%+1.4%
Q4 2023+1.8%+2.6%+6.2%
Q3 2023-1.5%-0.3%+6.6%
Q2 2023+2.2%+5.5%+1.9%
Q1 2023-5.1%-1.8%-9.1%
Q4 2022+1.9%+2.5%-0.2%
Q3 2022+3.9%+6.0%+10.9%
Q2 2022-3.2%-2.4%+5.6%
Q1 2022+1.4%-0.3%+0.8%
Q4 2021+4.9%+8.0%+4.2%
Q3 2021-2.5%-2.0%-4.3%
Q2 2021+0.6%+3.7%+1.9%
Q1 2021-4.2%-3.3%+6.2%
Q4 2020-4.6%+0.4%+9.0%
Q3 2020-0.0%-4.1%+12.7%
Q2 2020-3.9%-3.9%-1.7%
Q1 2020-9.4%-10.9%+3.0%
Q4 2019+2.8%-0.9%-14.3%
Q3 2018+3.5%+3.2%+9.6%
Q3 2019+6.9%+9.0%+14.8%
Q2 2019-7.0%-8.3%-22.9%
Q4 2017-7.0%-8.3%-22.9%
Q4 2018-7.0%-8.3%-22.9%
Q2 2018-7.0%-8.3%-22.9%
Q1 2019-5.0%-5.7%-16.7%
Q1 2018
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012

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